Further to a previous blog, i’m encountering an increasing amount of “hard nosed” developers.
Now if these developers aren’t setting the world alight with their monthly sales figures, and their year ends are looming, why aren’t they accepting the kind of offers they were last year?
Well interestingly the Government has told them not to!
Controversial i know but true in many cases.
I find more and more developers that have had their assets reposessed, now more often than not the banks that have reposessed these assets have been given massive cash injections by the government.
Now you have all these developers that are partly or solely owned by a bank, the bank is owned by the government or has shares in them…
Now this is the interesting bit….The government will not let the banks take a penny loss on their existing debts, so if the land and the build of a scheme stands the developer in at say £10m, any offer under that will automatically be declined.
The result of this is that the property market does exactly what the government injected all of this money into the economy for it not to do! Which is stagnate.
Nobody buys or sells because the market is simply not there.Back to news